All but 1 Hoggy's closes

Wednesday

Jan 11, 2012 at 12:01 AMJan 11, 2012 at 1:34 PM

After losing out to a bad economy, Hoggy's has closed six of its seven restaurants, and the chain was put into receivership. The Hoggy's in Gahanna will remain open and will be operated by the receiver under court jurisdiction, said A.C. Strip, an attorney for the receiver.

Tracy Turner, The Columbus Dispatch

After losing out to a bad economy, Hoggy’s has closed six of its seven restaurants, and the chain was put into receivership.

The Hoggy’s in Gahanna will remain open and will be operated by the receiver under court jurisdiction, said A.C. Strip, an attorney for the receiver. The moves will result in the loss of 100 jobs.

The restaurant company, well known for its slabs of ribs and pulled-pork sandwiches, marked its 20th anniversary last year. The Gahanna location will be operated by the receiver, Jack Harris, a consultant in the food industry, Strip said.

Citing poor sales and increased competition, Hoggy’s parent company, Three Little Pigs Ltd., voluntarily went into receivership and agreed to the sale of all assets from the closed locations, Strip said.

Much of Hoggy’s difficulty stemmed from the economic downturn, Strip said.

“The stores were shut down because they were underperforming,” he said. “It’s a very difficult business climate right now for restaurants, especially in a down economy and with increased competition.”

The downturn in spending by restaurant customers and rising commodity costs have hurt the restaurant industry, said Robert Welcher, president and CEO of Restaurant Consultants Inc.

Food and beverage costs are expected to increase 5?percent or more this year, according to Fitch Ratings, a global research firm.

Some operators have been able to beat the trend by coming up with menu innovations to deal with the challenges, Welcher said. Barbecue restaurants, however, have a harder time offering more value-oriented items on their menus because of the higher prices for pork and beef, he said.

“Barbecue has always had a tough time in the Columbus market, because it’s not one of the more-popular food segments in the Midwest,” he said. “With less consumer acceptance and less frequency of diners, combined with consumers who are spending less, it’s a tougher market for operators.”

All gift cards currently held by consumers will be honored at the Gahanna store, which will “ continue to do business as usual,” Strip said.

The Gahanna location will also handle all catering operations, he said.